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Putin: 'Unfriendly' states to pay for Russian gas in rubles

joluoto

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Putin: 'Unfriendly' states to pay for Russian gas in rubles


On the one hand this move would help stabilize the ruble, on the other Russia's foreign currency reserve that is already near breaking point would just collapse with the end of any new foreign currency. No country that sell stuff to Russia want to be paid in rubles. Also it's probably breach of contract, since the contracts tend to stipulate which currency the transaction will be in. This seem like another instance of Putin shooting himself in the foot.
 

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Putin: 'Unfriendly' states to pay for Russian gas in rubles


On the one hand this move would help stabilize the ruble, on the other Russia's foreign currency reserve that is already near breaking point would just collapse with the end of any new foreign currency. No country that sell stuff to Russia want to be paid in rubles. Also it's probably breach of contract, since the contracts tend to stipulate which currency the transaction will be in. This seem like another instance of Putin shooting himself in the foot.
Admittedly economics is not my strong suit but I don't understand this at all. Why would Putin want more rubles? Their value has nosedived. Unless in order to pay in rubles countries would have to buy rubles thus bringing their value back up? I don't understand. Shouldn't Putin just want to be paid in solvent currencies in the first place?
 

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Admittedly economics is not my strong suit but I don't understand this at all. Why would Putin want more rubles? Their value has nosedived. Unless in order to pay in rubles countries would have to buy rubles thus bringing their value back up? I don't understand. Shouldn't Putin just want to be paid in solvent currencies in the first place?
I think it has something to do with the confidence in the currency, which has about as much to do with the confidence in the home market as in foreign market. The ruble has no confidence in foreign markets, but there are a chance to boost the confidence in the home market. And yes, as you said ot would force foreign governments to buy rubles, thus somewhat increase the value. Then again I don't see this helping them in the long run, getting foreign currency from export, means having foreign currency to pay for imports. As I already say, none of the countries selling to Russia want to be paid in Rubles, any stabilization this would cause would be very short lived. Thus Putin shooting himself in the foot.
 

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Putin: 'Unfriendly' states to pay for Russian gas in rubles


On the one hand this move would help stabilize the ruble, on the other Russia's foreign currency reserve that is already near breaking point would just collapse with the end of any new foreign currency. No country that sell stuff to Russia want to be paid in rubles. Also it's probably breach of contract, since the contracts tend to stipulate which currency the transaction will be in. This seem like another instance of Putin shooting himself in the foot.
It's all about the end of the "Petro-dollar".

The EU has few options as they are reliant upon Russia for energy products oil and gas. If Putin organizes payment in rubles, his currency will automatically increase. This sets the stage for other less hostile countries like the BRICS alliance to assist Putin ideologically and financially by transacting in rubles through the Russian central bank.
 

joluoto

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It's all about the end of the "Petro-dollar".

The EU has few options as they are reliant upon Russia for energy products oil and gas. If Putin organizes payment in rubles, his currency will automatically increase. This sets the stage for other less hostile countries like the BRICS alliance to assist Putin ideologically and financially by transacting in rubles through the Russian central bank.​
The thing is no one is interested in aiding Russia. Not for free. Bolsonaro tries to pretend nothing is happening, but Brazil buys alot of fertilizer from Russia, and Russia has suspended fertilizer exports due to logistics problems. The Brazilian main interest in this will be to find someone else to sell then what they can't get from Russia. China and India are always at each others throat, and India's alignment with both West and Russia is all about weakening China and Pakistan. India agrees to buy gas now because Russia dropped the price considerably, basically selling it below market value. India just sees a way to get gas cheap (and selling that cheap will just highlight Russia's cash problem). China is never doing anything for free, Putin is begging them to help, but their help always has a steep price. Putin might not be willing to pay it. Putin has no other way to get foreign currency than through payments from exports right now, he need that foreign currency to pay for his imports. As I said, no country that exports to Russia want to be paid in Rubles.
 

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Putin: 'Unfriendly' states to pay for Russian gas in rubles


On the one hand this move would help stabilize the ruble, on the other Russia's foreign currency reserve that is already near breaking point would just collapse with the end of any new foreign currency. No country that sell stuff to Russia want to be paid in rubles. Also it's probably breach of contract, since the contracts tend to stipulate which currency the transaction will be in. This seem like another instance of Putin shooting himself in the foot.

Maybe the West shot itself in the foot with the sanctions themselves. Their economies are about to go down the drain too off the back of this stance and I feel the US has thrown them under the bus on this.

As for the breach of contract , I would imagine to seize a nations assets isn't part of the deal , so it might be a case of who broke the contracts first.

There is a lot we are not being told in the West about this conflict, just like our Russian counterparts and I think a European economic collapse is one of the biggest ones.
 

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Maybe the West shot itself in the foot with the sanctions themselves. Their economies are about to go down the drain too off the back of this stance and I feel the US has thrown them under the bus on this.

As for the breach of contract , I would imagine to seize a nations assets isn't part of the deal , so it might be a case of who broke the contracts first.

There is a lot we are not being told in the West about this conflict, just like our Russian counterparts and I think a European economic collapse is one of the biggest ones.

No, they didn't..
 

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Maybe the West shot itself in the foot with the sanctions themselves. Their economies are about to go down the drain too off the back of this stance and I feel the US has thrown them under the bus on this.

As for the breach of contract , I would imagine to seize a nations assets isn't part of the deal , so it might be a case of who broke the contracts first.

There is a lot we are not being told in the West about this conflict, just like our Russian counterparts and I think a European economic collapse is one of the biggest ones.
You think the E.U. economy will collapse before the Russian economy? Seriously?
 

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Maybe the West shot itself in the foot with the sanctions themselves. Their economies are about to go down the drain too off the back of this stance and I feel the US has thrown them under the bus on this.

As for the breach of contract , I would imagine to seize a nations assets isn't part of the deal , so it might be a case of who broke the contracts first.

There is a lot we are not being told in the West about this conflict, just like our Russian counterparts and I think a European economic collapse is one of the biggest ones.
From the guy advocating for nuclear war…I think your economic predictions are about as reasonable as your military ones.
 

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Putin: 'Unfriendly' states to pay for Russian gas in rubles


On the one hand this move would help stabilize the ruble, on the other Russia's foreign currency reserve that is already near breaking point would just collapse with the end of any new foreign currency. No country that sell stuff to Russia want to be paid in rubles. Also it's probably breach of contract, since the contracts tend to stipulate which currency the transaction will be in. This seem like another instance of Putin shooting himself in the foot.
Very likely, he is betting that various countries would have to go to the Russian central bank and exchange their currency for the ruble, increasing their foreign currency holdings. That would allow them to try and buy things like military equipment or even help stabilize their currency.
 

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You think the E.U. economy will collapse before the Russian economy? Seriously?


I think the Russians have the Chinese to fall back on vis a vis their energy exporting revenue and the EU has who?

People from the states had to crawl over to Maduro, a man whose head they have millions of dollars on, and ask for his assistance wrt oil availability/production

Johnson went on his knees to Saudi headchoppers .

Do you think all of that looks like they have really though this through?
 

oneworld2

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From the guy advocating for nuclear war…I think your economic predictions are about as reasonable as your military ones.

Where has Putin advocated for nuclear war? I get the hype around his posturing wrt raising the level of those charged with the Russian nuclear weapons capabilities but " advocating for nuclear war" ? Really?

I think you are overwhelmed by the propaganda you are being drowned in every day
 

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Where has Putin advocated for nuclear war? I get the hype around his posturing wrt raising the level of those charged with the Russian nuclear weapons capabilities but " advocating for nuclear war" ? Really?

I think you are overwhelmed by the propaganda you are being drowned in every day
Wasnt referring to Putin.
 

oneworld2

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Wasnt referring to Putin.

But you don't say who you are referring to. Is this how you prefer to debate/discuss things?

If so it will be a really short exchange
 

Peter King

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You think the E.U. economy will collapse before the Russian economy? Seriously?
Nah, the GDP of the Netherlands with it's 17.6 million people is 1,007,562 million USD
The GDP of Russia with it's 145 million people is 1,647,568 million USD

So with about 1/9 of the population the Dutch has 61% of the Russian total GDP. That is a very healthy economy.

The German economy is about 3 times the Russian economy. France's economy is much larger than the Russian one. Italy's economy is much bigger. The economy of Spain is just a bit less than the Russian one. The economy of the EU is 10 times the Russian one.

So no, the EU economy will not collapse before the Russian one because without money from the Western Worlds the economy of Russia will collapse sooner rather than later.
 

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I think the Russians have the Chinese to fall back on vis a vis their energy exporting revenue and the EU has who?

People from the states had to crawl over to Maduro, a man whose head they have millions of dollars on, and ask for his assistance wrt oil availability/production

Johnson went on his knees to Saudi headchoppers .

Do you think all of that looks like they have really though this through?
EU has the Arab World, EU leaders are already going to the Arab world to beg. The Germans went to Doha and Abu Dhabi, at a time when the need to get away from oil and gas is greater than ever, they just decide to swap the Tyrant in Moscow for the Tyrants on the Peninsula. And we remain stuck with oil, gas, pollution and climate change forever.
 

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Not counting the US, the world's largest fossil-fuel reserves are held by dictatorships.

Nothing will change until we get away from fossil-fuels.
 

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One thing is for sure now, investments in renewables will surge in Europe.

One sector in the UK that is also seeing huge investment is power from waste where rubbish is burned and turned into electricity.
This is being built not that far from me.
 

Rogue Valley

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Poland has a LNG terminal. Germany says she will build 2 LNG terminals.

Ukraine was going to construct a LNG terminal near Odesa.
 
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Since we are hitting warm months, perhaps there is time for Europe to find other sources of natural gas so we can stop giving any money to Europe. This is why we need to get off fossil fuels, sending money to corrupt countries and letting them get away with being dicks
 

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I think the Russians have the Chinese to fall back on vis a vis their energy exporting revenue and the EU has who?

People from the states had to crawl over to Maduro, a man whose head they have millions of dollars on, and ask for his assistance wrt oil availability/production

Johnson went on his knees to Saudi headchoppers .

Do you think all of that looks like they have really though this through?
The United States has more fossil fuel reserves than China does, and Canada has more than double the fossil fuel reserves that Russia has.
 

lwf

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Not counting the US, the world's largest fossil-fuel reserves are held by dictatorships.

Nothing will change until we get away from fossil-fuels.
Only Venezuela and Saudi Arabia have more than Canada does.
 

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One thing is for sure now, investments in renewables will surge in Europe.

One sector in the UK that is also seeing huge investment is power from waste where rubbish is burned and turned into electricity.
This is being built not that far from me.
Bet that'll do wonders for your property values.
 
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